BNB News Today: CZ Warns Meme Coin Risks as Binance-Linked Tokens Surge

Changpeng Zhao (CZ), co-founder and former CEO of Binance, has clarified that his recent social media activity overlapping with meme coins is coincidental and not an endorsement, addressing growing speculation following the surge of the TST token. The token, initially a test asset featured in a now-deleted Binance tutorial on meme coin creation, gained traction as a meme coin after CZ's repeated mentions of it on X (formerly Twitter) sparked volatility. CZ reiterated that he has never purchased meme coins and emphasized his focus on fundamentals over speculative trends.

The TST incident highlighted flaws in Binance's token listing process, which CZ acknowledged as "a bit broke." He explained that the exchange's practice of announcing listings just four hours before going live often triggers price surges on decentralized exchanges (DEXs), as traders exploit the gap before centralized exchanges (CEXs) list the token. This dynamic, he noted, underscores the need for improved listing protocols to mitigate market distortions.

CZ's stance on meme coins reflects a nuanced perspective. While he compared his disinterest in meme coins to his lack of investment in sports cars or NFTs, he acknowledged their cultural appeal and speculative role in crypto markets. He attributed the popularity of meme coins to regulatory challenges faced by utility tokens, which have pushed projects toward assets with less intrinsic value but higher liquidity. Additionally, he noted that speculators favor meme coins for their volatility, which drives trading activity.

The broader market context reveals a surge in meme coin creation, with over 37 million tokens launched to date. Binance's latest market report projects this number could exceed 100 million by year-end, driven by launchpads like Solana's Pump.fun and Tron's SunPump. Despite CZ's previous caution against "excessive hype" in meme coins, the BNB Chain has seen a new "meme season" emerge, with tokens inspired by CZ's public persona and Binance's branding surging in value. For instance, the token "4," linked to CZ's meme, reached a $243 million market cap within a week of its launch.

CZ issued a risk warning for meme coin participants, emphasizing that his tweets do not constitute endorsements. He highlighted that token allocations to his wallet do not mitigate the inherent risks of meme coins, which remain high-risk assets prone to sharp corrections. This caution follows reports of traders profiting from meme coin speculation, with over 100,000 on-chain traders seeing gains, including 70% in profit as of October 7, 2025.

The TST controversy and broader meme coin dynamics underscore the tension between market fundamentals and speculative behavior in crypto. CZ's comments reflect Binance's ongoing challenges in balancing innovation with regulatory scrutiny, as the exchange navigates its post-settlement landscape in the U.S. While CZ's influence remains a catalyst for market movements, his warnings highlight the volatile and unpredictable nature of meme-driven assets.

Source: [1] CZ Speaks Out on Meme Coins Amid the TST Incident (https://beincrypto.com/cz-tst-meme-coins-binance/) [2] Binance Founder CZ Denies Buying Any Meme Coins (https://thecryptobasic.com/2025/02/10/binance-founder-cz-denies-buying-any-meme-coins/) [3] CZ Addresses Meme Coin Speculation Amid TST Token Controversy (https://tokenpost.com/news/people/13968) [4] BNB 'Meme Season' Arrives as Binance and CZ Coins Get Hot (https://decrypt.co/343290/bnb-meme-season-arrives-binance-cz-coins-get-hot) [5] CZ Issues BNB Meme Season Risk Warning: Overlapping with ... (https://www.panewslab.com/en/articles/a6dcf625-f3bf-4fe4-81f4-b965edba6d24) [6] Binance Comeback: CZ's Return and Meme Mania ... (https://www.cryptometer.io/news/binance-comeback-czs-return-and-meme-mania-spark-bnb-season-rally/)